Andorra (AD)
Andorra is a tiny parliamentary co-principality nestled in the Pyrenees mountains between France and Spain, governed jointly by the French President and the Bishop of Urgell.
Capital: Andorra la Vella
Region: Europe
Language: Catalan
Currency: EUR (€)
Cost of living: Moderate (index 70)
Emergency: 112
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Business Setup
Start a business or go freelance in Andorra.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Step 1: Obtain Andorran active residency permit (Residència activa) — prerequisite for all self-employment. Non-EU nationals must obtain work authorisation simultaneously from Servei d'Immigració.
- 2 Step 2: Apply to the Departament de Comerç for authorisation of your professional activity (autorització d'activitat). Submit: business plan, professional qualifications, proof of residency, and description of services.
- 3 Step 3: If in a regulated profession (doctor, lawyer, architect, pharmacist): obtain recognition from the relevant Andorran professional body (Col·legi Professional) before operating.
- 4 Step 4: Register with the Registre de Societats Mercantils d'Andorra if your activity involves commercial transactions.
- 5 Step 5: Register as autònom at CASS (Caixa Andorrana de Seguretat Social) for social security contributions — required for healthcare access and legal operation.
- 6 Step 6: Register with the Departament de Tributs i de Fronteres for IRPF (personal income tax) and IGI (VAT equivalent) purposes.
- 7 Step 7: Open a dedicated business bank account with an Andorran bank — separate from personal account. Allow 2–4 weeks for KYC compliance.
- 8 Step 8: Obtain professional liability insurance (assegurança de responsabilitat civil professional) if required for your profession.
Tax registration
Self-employed professionals register with the Departament de Tributs i de Fronteres for IRPF (Impost sobre la Renda de les Persones Físiques). Andorra's IRPF maximum rate is 10% — first €24,000 of income is completely tax-free. No personal income tax registration equivalent to a national insurance number — CASS affiliation number serves this purpose. If your annual revenue exceeds the IGI (VAT) threshold (€40,000 in 2026), you must register for IGI at 4.5% standard rate. Corporate tax (IS — Impost sobre Societats) only applies if operating through a company — autònom pay IRPF, not IS.
VAT threshold
Andorra's IGI (Impost General Indirecte — VAT equivalent) registration threshold: €40,000 of annual taxable turnover (services and goods). Standard IGI rate: 4.5%. Reduced rate: 1% (essential goods). Once registered, IGI must be declared quarterly to the Departament de Tributs. Most small autònom freelancers (under €40,000 revenue) are IGI-exempt — confirm with a qualified Andorran tax adviser for your specific activity.
Invoicing
Invoices must include: full name/business name and Andorran address, client's full details, invoice number (sequential, no gaps), service date(s), description of services in sufficient detail, net amount, IGI rate and amount (if IGI-registered), and your Andorran autònom registration number. Invoices to Andorran clients: may be in Catalan or Spanish. Record retention: 10 years for commercial documents under Andorran commercial law.
Social security
Self-employed autònom must register with CASS and pay the full combined contribution rate of 22% of net professional income. This covers: healthcare (CASS mutual insurance), work accident insurance (optional elected add-on for autònom), maternity/paternity benefits, disability, and pension accrual. CASS contributions are assessed annually based on declared income. First-year contributions are based on a provisional minimum base — adjusted once actual income is confirmed. Minimum CASS base for autònom: approximately €1,100/month (2026).
💡 Andorra is one of Europe's most attractive freelance destinations. No wealth tax. No inheritance tax (direct heirs). No capital gains tax on personal investments. Max 10% income tax with €24,000 tax-free allowance. CASS contributions (~22%) are the main overhead — equivalent to social security costs in any European country. Key advantage over Spain: no Spanish-style autónomo flat fee (€230–400/month minimum); Andorran CASS scales with declared income. French nationals: remain subject to French income tax on worldwide income regardless of Andorran residency — verify with a specialist. EU-association negotiations may change Andorra's regulatory framework in coming years.
🏢 Business Structures
Autònom (Treballador per compte propi) · Treballador Autònom — Activitat Professional Independent
Self-Employed / Sole Trader
None
Min. capital
6–10 weeks (includes work authorisation for non-EU nationals)
Setup time
Liability: Unlimited personal liability
Setup cost: €200–600 (Departament de Treball + CASS registration fees)
Best for: Consultants, IT professionals, coaches, creatives, and service professionals. Most accessible form for expats. Requires active residency with autònom authorisation from Servei d'Immigració.
SL (Societat Limitada) · Societat Limitada — Andorra
Private Limited Company (Ltd)
€3,000 (minimum share capital, fully paid up at incorporation)
Min. capital
4–8 weeks (Departament de Comerç approval required)
Setup time
Liability: Limited to company assets
Setup cost: €1,500–4,000 (notary + Registre de Societats fees)
Best for: Most common structure for small-to-medium Andorran businesses. Suitable for tourism, retail, consultancy, and services. Foreigners can own 100% in most sectors. SL subject to Impost sobre Societats (IS) — corporate tax at 10%.
SA (Societat Anònima) · Societat Anònima — Andorra
Public Limited Company (PLC/Corporation)
€60,000 (minimum)
Min. capital
8–16 weeks
Setup time
Liability: Limited to company assets
Setup cost: €5,000–15,000 (notary, government fees, Registre de Societats)
Best for: Larger Andorran companies, financial services firms (banks, investment companies), and businesses seeking multiple shareholders or eventual capital raising. Required for some regulated financial activities.
SLU (Societat Limitada Unipersonal) · Societat Limitada Unipersonal
Single-Member Limited Company
€3,000
Min. capital
4–8 weeks
Setup time
Liability: Limited to company assets
Setup cost: €1,500–3,500
Best for: Solo entrepreneurs wanting limited liability protection. Single director/shareholder allowed. More administrative overhead than autònom but protects personal assets from business debts.
Sucursal (Branch Office) · Sucursal d'Empresa Estrangera
Branch of a Foreign Company
None (parent company's capital)
Min. capital
6–12 weeks (Departament de Comerç approval)
Setup time
Liability: Parent company liable
Setup cost: €2,000–5,000
Best for: Foreign companies wanting an Andorran presence without incorporating a new entity. Common for Spanish and French companies expanding into the Andorran market. Tax treaty implications must be assessed.
Fundació (Foundation) · Fundació Privada d'Andorra
Private Foundation
€30,000 minimum endowment
Min. capital
2–4 months (government approval required)
Setup time
Liability: Foundation assets separate from founders
Setup cost: €3,000–10,000 (legal and notarial fees)
Best for: Philanthropic structures, family wealth management, and cultural/environmental missions. Andorran foundations enjoy favourable tax treatment and no inheritance tax between direct heirs. No commercial activity permitted (distinguished from commercial entities).
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